{"id":123748,"date":"1994-12-07T00:00:00","date_gmt":"1994-12-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/madya-pradesh-hasta-shilpa-vikas-vs-devendra-k-jain-on-7-december-1994"},"modified":"2016-01-19T21:52:10","modified_gmt":"2016-01-19T16:22:10","slug":"madya-pradesh-hasta-shilpa-vikas-vs-devendra-k-jain-on-7-december-1994","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/madya-pradesh-hasta-shilpa-vikas-vs-devendra-k-jain-on-7-december-1994","title":{"rendered":"Madya Pradesh Hasta Shilpa Vikas &#8230; vs Devendra K.Jain on 7 December, 1994"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Madya Pradesh Hasta Shilpa Vikas &#8230; vs Devendra K.Jain on 7 December, 1994<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1995 SCC  (1) 638, \t  JT 1995 (1)\t198<\/div>\n<div class=\"doc_author\">Author: F Uddin<\/div>\n<div class=\"doc_bench\">Bench: Faizan Uddin (J)<\/div>\n<pre>           PETITIONER:\nMADYA PRADESH HASTA SHILPA VIKAS LTD\n\n\tVs.\n\nRESPONDENT:\nDEVENDRA K.JAIN\n\nDATE OF JUDGMENT07\/12\/1994\n\nBENCH:\nFAIZAN UDDIN (J)\nBENCH:\nFAIZAN UDDIN (J)\nAGRAWAL, S.C. (J)\n\nCITATION:\n 1995 SCC  (1) 638\t  JT 1995 (1)\t198\n 1994 SCALE  (5)164\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>The Judgment of the Court was delivered by<br \/>\nFAIZAN UDDIN, J.- Leave granted.\n<\/p>\n<p>2.The  appellant  is  a\t government  company  within  the<br \/>\nmeaning\t of  Section  617  of the  Companies  Act  which  is<br \/>\ncontrolled   and  owned\t by  the  State\t Government  and   a<br \/>\nsubsidiary  company of M.P. Laghu Udhyo Nigam Limited  which<br \/>\nis  carrying  on  business  activities\tof  development\t  of<br \/>\nhandicrafts and handloom products.  At the relevant time one<br \/>\nShri K.P Thakur was the Managing Director of the  appellant-<br \/>\ncompany who by an order dated 6-7-1989 Annexure-D  appointed<br \/>\nRespondents 1 to 3, namely, Devendra Kumar Jain, Dilip\tGoel<br \/>\nand  Promod Mishra as temporary Junior Managers and  by\t two<br \/>\nsubsequent  orders both dated 8-6-1989 (Annexure E\/1 and  2)<br \/>\nappointed  Respondents 4 and 5, namely, Mehboob Hussain\t and<br \/>\nLiaquat\t Mohd.\tKhilzi as temporary Junior Managers  in\t the<br \/>\nappellant   Company.   Soon  after  their  appointment\t the<br \/>\nappellant-Company noticed that the aforesaid appointments of<br \/>\nRespondents 1 to 5 were made by the then Managing  Director,<br \/>\nShri  K.P. Thakur in contravention of the  Government  Order<br \/>\ndated 1-4-1989 Annexure B without the approval of the  State<br \/>\nGovernment   and   therefore,  another\t Managing   Director<br \/>\nsuccessor  of  Shri  K.P. Thakur by  order  dated  31-7-1989<br \/>\nterminated   the  services  of\tRespondents  1\tto  5.\t The<br \/>\nrespondents challenged the aforesaid order of termination in<br \/>\nthe  High Court of Madhya Pradesh in Miscellaneous  Petition<br \/>\nNo.  3973\/83 which was allowed by judgment  dated  1-12-1993<br \/>\nwhereby\t the  order of termination of  the  respondents\t was<br \/>\nquashed.   It  has been directed that the  respondents\twill<br \/>\ncontinue  in  service till their services  are\tnot  validly<br \/>\nterminated.   It is this order which has been challenged  in<br \/>\nthis appeal.\n<\/p>\n<p>3.The  High  Court quashed the order  of  termination  of<br \/>\nservice of respondents mainly on two grounds.  Firstly,\t the<br \/>\nHigh Court took the view that the respondents&#8217; services were<br \/>\nterminated without giving them any opportunity of hearing in<br \/>\nconsonance with the rules of natural justice and, therefore,<br \/>\nthe order of termination of service was contrary to law\t and<br \/>\nviolative  of Article 14 of the Constitution and;  secondly,<br \/>\nGovernment approval was not necessary for the appointment as<br \/>\ncontended by the appellant and that in any case no  material<br \/>\nwas placed to show that the appointment was contrary to\t the<br \/>\nGovernment instructions.  In our considered opinion the High<br \/>\nCourt  fell  in serious error in taking the  aforesaid\tview<br \/>\nand,  therefore,  the order of the High Court could  not  be<br \/>\nsustained in law.\n<\/p>\n<p>4.Admittedly the appointment of the respondents was  made<br \/>\npurely on temporary basis which is evident from the order of<br \/>\ntheir appointment.  The<br \/>\n<span class=\"hidden_text\">640<\/span><br \/>\nfirst order dated 6-7-1989 Annexure D by which Respondents 1<br \/>\nto 3 were appointed reads as follows:\n<\/p>\n<p>\t\t\t\t\t &#8220;Bhopal, 6-7-1989<br \/>\n\t\t\t   ORDER<br \/>\nThe  following persons are appointed to the post  of  Junior<br \/>\nManager\t in the pay scale of 1290-30-1560-40-2040  from\t the<br \/>\ndate of taking over, till further orders temporarily and are<br \/>\nposted to the Headquarters:\n<\/p>\n<blockquote><p>\t      (1)   Shri D.K. Jain<br \/>\n\t      (2)   Shri Pramod Mishra<br \/>\n\t      (3)   Shri Dilip Kumar Goyal\n<\/p><\/blockquote>\n<p>2.   Employee has to submit Medical Fitness Certificate from<br \/>\nCivil Surgeonof the District.\n<\/p>\n<p>3.   Dearness  Allowance and other facilities  according  to<br \/>\nthe rules of the Corporation shall be payable.<br \/>\nAbove  appointments are purely temporary and are  liable  to<br \/>\ntermination without notice or assigning any reason.\n<\/p>\n<p>\t\t\tBy order of Managing Director<br \/>\n\t\t\tGeneral Manager<br \/>\n\t\t\tHastashilp Vikas Nigam Ltd., Bhopal&#8221;\n<\/p>\n<p>\t\t\t6-7-1989<br \/>\nThe subsequent two orders both dated 8-6-1989 with regard to<br \/>\nthe appointment of Respondents 4 and 5 are identical one  of<br \/>\nwhich is reproduced herein below:\n<\/p>\n<blockquote><p>\t\t\t\t\t\t&#8220;6-7-1989<br \/>\n\t\t\t   ORDER<br \/>\n\t      Shri Mohammad Hussain is appointed to the post<br \/>\n\t      of Junior Manager in the pay scale of 1290-30-<br \/>\n\t      1560-40-2040  from  the date of  taking  over,<br \/>\n\t      temporarily and posted at Headquarters.<br \/>\n\t      Employee\t has  to  obtain   Medical   Fitness<br \/>\n\t      Certificate  from Civil Surgeon and submit  to<br \/>\n\t      office.\n<\/p><\/blockquote>\n<blockquote><p>\t      Dearness\t Allowance  and\t  other\t  facilities<br \/>\n\t      according\t to  the rules\tof  the\t Corporation<br \/>\n\t      shall be payable.\n<\/p><\/blockquote>\n<blockquote><p>\t      Above  appointment is purely temporary and  is<br \/>\n\t      liable to termination at\tany   time   without<br \/>\n\t      notice or assigning a reason.\n<\/p><\/blockquote>\n<blockquote><p>\t\t\t\t\t    General Manager&#8221;\n<\/p><\/blockquote>\n<p>5. A plain reading of these two orders will go to show\tthat<br \/>\nthe  appointments  were made purely on temporary  basis\t and<br \/>\ntheir  services\t were liable to be terminated  at  any\ttime<br \/>\nwithout\t notice\t or assigning any reason.  In  the  case  of<br \/>\nappointment on temporary basis a servant who is so appointed<br \/>\ndoes  not  acquire any substantive right to the\t post,\teven<br \/>\nthough the post itself may be permanent and it is an implied<br \/>\nterm  of such appointment that it may be terminable  at\t any<br \/>\ntime  and  without notice.  A temporary\t government  servant<br \/>\ndoes  not  become a permanent government servant  unless  he<br \/>\nacquires<br \/>\n<span class=\"hidden_text\">641<\/span><br \/>\nthat  capacity\tby force of any rule or he  is\tdeclared  or<br \/>\nappointed as a permanent servant.  In the present case there<br \/>\nis no rule under which the respondents may be deemed to have<br \/>\nbecome\tpermanent  by force of such rule nor  they  were  so<br \/>\ndeclared by any subsequent order of the appellant-Company to<br \/>\nhave acquired that status.  On the contrary the\t respondents<br \/>\nall  along  continued to be temporary and according  to\t the<br \/>\nterms  of the order of appointment their services  could  be<br \/>\nterminated  at any time without any notice or assigning\t any<br \/>\nreasons.   In such a case it is not necessary to follow\t the<br \/>\nformalities contemplated by Article 311 of the Constitution.<br \/>\nIn  these  facts and circumstances the High  Court  was\t not<br \/>\nright  in  holding that the respondents\t were  entitled\t for<br \/>\nbeing heard before passing the said order of termination  of<br \/>\ntheir services and that the order of termination was bad  in<br \/>\nlaw on that account.\n<\/p>\n<p>6.   As\t regards  the  second  ground  the  learned  counsel<br \/>\nappearing  for the appellant contended that  the  appellant-<br \/>\nCorporation  had prepared a project in January 1980 (a\tcopy<br \/>\nof  which  is filed as Annexure A in this  appeal)  for\t the<br \/>\ndevelopment of handicrafts through exhibitions and  proposed<br \/>\nthat   five  officers  of  junior  manager  rank  and\tsome<br \/>\nsalesgirls\/salesmen  be appointed in that  connection.\t But<br \/>\nwhen  the Government came to know about the said project  it<br \/>\ndisapproved  the same by order dated 1-4-1989  (Annexure  B)<br \/>\nand directed that no appointments shall be made to the\tsaid<br \/>\npost   without\tobtaining  prior  approval  of\t the   State<br \/>\nGovernment.    The  learned  counsel  for   the\t  appellant,<br \/>\ntherefore, contended that the appointment of the respondents<br \/>\nwas made against the directions of the State Government\t and<br \/>\nwhile  quashing the order of the termination the High  Court<br \/>\ndid  not take into consideration the said directions of\t the<br \/>\nState Government.\n<\/p>\n<p>7.   It\t may  be  pointed  out\there  that  the\t  appellant-<br \/>\nCorporation  is a government company fully financed  by\t the<br \/>\nState  Government and that being so the Government would  be<br \/>\nvery  much  concerned to see that any project which  is\t not<br \/>\neconomically  beneficial  for the Corporation and  which  is<br \/>\nlikely to result in any loss should not be given effect\t to.<br \/>\nThe  Government,  therefore, would be justified\t in  issuing<br \/>\ninstructions that no appointments of any staff in connection<br \/>\nwith  the said project will be made without the approval  of<br \/>\nthe  Board  of Directors of M.P. Hasta\tShilpa\tVikas  Nigam<br \/>\nLimited\t and passed the order to that effect which has\tbeen<br \/>\nfiled as Annexure B in this appeal.  But it appears that the<br \/>\nHigh  Court ignored the said order of the  State  Government<br \/>\nwhile\tobserving  that\t no  material  in  support  of\t the<br \/>\ncontention  that the Government has issued instructions\t not<br \/>\nto make appointment was produced by the appellant.\n<\/p>\n<p>8.   It\t is  noteworthy\t that Shri  K.P.  Thakur,  the\tthen<br \/>\nManaging  Director himself was retiring on 31-7-1989 and  in<br \/>\nhot  haste  he\tissued\tthe orders  of\tappointment  of\t the<br \/>\nrespondents  on\t 6-7-1989  and\t8-6-1989  in  spite  of\t the<br \/>\ninstructions  of the State Government to the  contrary.\t  In<br \/>\nthese  facts and circumstances the impugned order passed  by<br \/>\nthe  High Court quashing the termination of service  of\t the<br \/>\nrespondents cannot be sustained.\n<\/p>\n<p><span class=\"hidden_text\">642<\/span><\/p>\n<p>9.   In\t the  result  the  appeal  succeeds  and  is  hereby<br \/>\nallowed.   The impugned order dated 1-12-1993 passed by\t the<br \/>\nHigh Court in Miscellaneous Petition No. 3973 of 1989 is set<br \/>\naside  and the said writ petition is dismissed\tbut  without<br \/>\nany order as to costs.\n<\/p>\n<p><span class=\"hidden_text\">644<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Madya Pradesh Hasta Shilpa Vikas &#8230; vs Devendra K.Jain on 7 December, 1994 Equivalent citations: 1995 SCC (1) 638, JT 1995 (1) 198 Author: F Uddin Bench: Faizan Uddin (J) PETITIONER: MADYA PRADESH HASTA SHILPA VIKAS LTD Vs. RESPONDENT: DEVENDRA K.JAIN DATE OF JUDGMENT07\/12\/1994 BENCH: FAIZAN UDDIN (J) BENCH: FAIZAN UDDIN [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-123748","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Madya Pradesh Hasta Shilpa Vikas ... vs Devendra K.Jain on 7 December, 1994 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/madya-pradesh-hasta-shilpa-vikas-vs-devendra-k-jain-on-7-december-1994\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Madya Pradesh Hasta Shilpa Vikas ... vs Devendra K.Jain on 7 December, 1994 - Free Judgements of Supreme Court &amp; 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